'Financial services customers are moving to the cloud' - Kerv boss on latest acquisition

Kerv has detailed the rationale behind its latest acquisition

Kerv has said the compliance space within financial services is starting to transform to cloud and becoming "significantly" more digital as it detailed its rationale behind its latest acquisition.

The cloud and digital transformation services firm announced on Monday that it has struck a deal to acquire the Communications Compliance Practice (CCP) business of TDS Global, with CCP set to bring over core technology capabilities.

Kerv plans to retain all staff in the CCP business, while CEO Brad Gorton and head of strategy Paul Wilson will join Kerv in senior roles, working closely alongside the management team at Kerv Collaborate.

Rufus Grig, chief technology and strategy officer at Kerv, said the move "strengthens its reach in financial services", with the compliance space within the sector being in "strong growth".

He told CRN: "It's a market that's transforming in two ways. It's going to cloud because financial services and compliance, they've been a little bit hesitant on that cloud journey, just because of the type of business that it is. But they're now starting to do that cloud move and accelerate on that.

"Secondly, it's becoming significantly more digital because everything used to be about voice and now there are multiple communication channels that need to be recorded, stored, managed and analysed. So everything from Microsoft Teams messages, Zoom, Google calls, WhatsApp, Snapchat, you name it."

Grig went on to explain that as it's a market where there is "a lot going on", there is room to develop the business further.

He added: "We think that our cloud skills and our digital transformation skills can help develop the business further and gives some real scale to our existing financial services communications compliance capability."

Grig also said the move "broadens Kerv's portfolio", with it now being able to bring more of its products to compliance practices.

He said: "It helps us with some adding capability to other members of the groups.

"I think we'll be able to bring some of the other Kerv products and services to the compliance practices, customers and vice versa. We've got that neat fit to be able to broaden the portfolio."

The move is set to take the total Kerv business to a turnover of over £60m and more than 500 staff while strengthening its existing proposition and capabilities around all aspects of compliance.

Grig said Kerv is focused on organic growth and throughout its acquisitions look for businesses "that are growing fast".

He added: "We put a lot of effort into creating great experience for employees, that then corresponds to creating a fantastic experience for customers.

"That continues to support that organic growth together but bringing that additional capability. We do look at that double-digit organic growth from right across the group, including this particular practice.

"We're continuing that relentless focus on growing."